Deliveroo has confirmed that it will be valued at around £7.6 billion in its bumper London listing.
Earlier this month, the takeaway delivery giant said it hoped for a valuation between £7.6 billion and £8.8 billion.
However, it has said it will now price shares at the very bottom of its potential range after a number of leading UK fund managers said they would reject the listing amid concerns over workers’ rights issues and its shareholder structure.
The company, which was founded by Will Shu in 2013, has said it will offer new shares to investors at a price of 390p per share.
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It said it plans to raise around £1 billion through selling shares to new investors, with a further £500 million worth of shares to be sold to existing backers.
Deliveroo said it plans to invest the funds into continuing its growth trajectory and fuelling its innovation efforts.
Mr Shu said: “I am very proud that Deliveroo is going public in London – our home.
“As we reach this milestone I want to thank everyone who has helped to build Deliveroo into the company it is today – in particular our restaurants and grocers, riders and customers.
“In this next phase of our journey as a public company we will continue to invest in the innovations that help restaurants and grocers to grow their businesses, to bring customers more choice than ever before, and to provide riders with more work.
“Our aim is to build the definitive online food company and we’re very excited about the future ahead.”
Last week, some of the UK’s largest fund managers, including Legal & General and Aviva, said they would reject the flotation, highlighting issues related to its business model, workers’ rights and regulatory concerns.
Firms have also raised concerns over the share structure, which will see founder Will Shu have 20 votes per share, compared with one per share for other investors, giving him a majority position at shareholder votes.
